Substack CEO Chris Best apologized for laying off 13 employees on June 29 after previously stating the company would “not do layoffs,” calling it the “saddest day we’ve had” at the company.
“The people we are parting ways with are all smart, talented, and dedicated to their work and Substack’s mission. It has been a privilege to work alongside them and we’ll miss them," Best wrote in his message to employees.
The CEO went on to note that Substack is aiming to become “robust” even in “the toughest market conditions” and bosses are hoping to “set the company up for long-term success without relying on raising money—or, at least, doing so only on our time and our terms.”
Substack ‘Remains in a Strong Position’Substack has raised at least $86 million over three rounds of funding, according to PitchBook, which tracks funding, and earned $9 million in revenue in 2021, according to The New York Times.
Despite letting 13 employees go, Best said the company “remains in a strong position” and continues to expand.
“We have a business model that works, and we have money in the bank. But the way we play to win in 2022 and beyond is different from the way we were playing in 2021,” the CEO wrote.
Inflation levels at a 40-year-high across the United States and increased interest rates have left many companies tightening their belts amid soaring costs, while some experts believe a recession is on the horizon in the not-so-distant future.
The majority of business leaders cited rising costs, inflation, and difficulties in hiring and retaining employees amid labor shortages as the top challenges facing their companies.